We have claimed the ITC on the Vehicles which is a blocked credit u/s 17(5) of CGST Act 2017 in F.Y 2017-18.
What would be the treatment of such credit in GST Annual Return and Audit? If we need to reverse it ,under which table we need to disclose in GSTR 9 & 9C ?
Do we need to pay tax on the such ITC claimed (to be reversed) along with the interest, what would be the rate of interest (18% or 24% ) ,and for which period interest is calculated? What would be the treatment if the ITC was claimed but not yet utilized which was still reflecting in credit ledger, in such case what would be the period of charging the interest and liability payable?
Debate on Reversal of ITC for Vehicles Under Section 17(5) of CGST Act 2017: Reporting and Interest Implications A query was raised regarding the reversal of Input Tax Credit (ITC) claimed on vehicles, which is considered blocked credit under Section 17(5) of the CGST Act 2017. The discussion focused on how to disclose this in the GST Annual Return and Audit, specifically in GSTR-9 and 9C, and whether tax and interest need to be paid on the reversed ITC. One participant suggested showing details in Table 7E of GSTR-9 and 12F of GSTR-9C, with an 18% interest rate from the date of ITC claim. Another disagreed, stating the amount should be paid through the cash ledger with interest from the date of utilization. (AI Summary)
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